From: The Honorable Carolyn B. Maloney
Support Community Development Financial Institutions (CDFIs) Fund
in FY 2018
Current Cosigners (48): Adams, Beatty, Beyer, Bonamici, Carson, Castor, Chu, Clarke, Conyers, Crist, Cummings, Davis, Defazio, Delaney, Ellison, Al Green, Gonzalez, Grijalva, Hanabusa, Hastings, Heck, Higgins,
Jackson Lee, Kildee, Kind, Lee, Ben Ray Lujan, Michelle Lujan Grisham, Lynch, McGovern, Meeks, Moore, Stephanie Murphy, Norton, Panetta, Payne, Peterson, Pingree, Pocan, Richmond, Sarbanes, David Scott, Speier, Vargas, Velazquez, Wasserman Schultz, Yarmuth,
Please join us in sending a letter to the Financial Services Appropriations Subcommittee requesting
$250 million for the Community Development Financial Institutions (CDFI) Fund for Fiscal Year 2018. This was the funding level agreed to by the House in the Fiscal Year 2017 House Financial Services Appropriations bill.
The CDFI Fund’s mission is to expand the capacity of CDFIs to provide credit, capital, and financial services to underserved populations and communities across the country. Housed within the Department of the Treasury, the CDFI Fund spurs investments in
local and often underserved communities in rural, urban and Native areas by fostering the creation and expansion of CDFIs, private sector financial institutions that specialize in providing affordable credit, creating jobs, and revitalizing neighborhoods.
Funding appropriated to the CDFI Fund supports three CDFI Grant Programs: Financial Assistance (FA) and Technical Assistance (TA) Grants, the Native American CDFI Assistance (NACA) Program, and the Bank Enterprise Award (BEA) Program. The CDFI Fund is also
responsible for administering community development programs like the New Markets Tax Credit (NMTC) Program.
We hope you will join us in supporting funding for the CDFI Fund at $250 million in FY18. If you would like to sign the letter or have any questions, please have your staff contact Lucas Siegmund with Rep. Maloney at 5-7944 (Lucas.Siegmund@mail.house.gov),
Joseph Lustig with Rep. Richmond at 5-6636 (Joseph.Lustig@mail.house.gov) or Ernie Jolly with Rep. Meeks at 5-3461 (Ernie.Jolly@mail.house.gov).
The deadline to sign is COB Tuesday, March 28. As this is a programmatic request, Members are required to submit documentation online with the House Financial Services Appropriations Subcommittee.
Carolyn B. Maloney Cedric L. Richmond Gregory W. Meeks Alcee Hastings Barbara Lee
Member of Congress Member of Congress Member of Congress Member of Congress Member of Congress
The Honorable Rodney Frelinghuysen The Honorable Nita Lowey
Chairman Ranking Member
Committee on Appropriations Committee on Appropriations
U.S. House of Representatives U.S. House of Representatives
Washington, DC 20515 Washington, DC 20515
The Honorable Tom Graves The Honorable Mike Quigley
Chairman Ranking Member
House Appropriations Committee House Appropriations Committee
Subcommittee on Financial Services Subcommittee on Financial Services
Washington, DC 20515 Washington, DC 20515
Dear Chairman Frelinghuysen, Ranking Member Lowey, Chairman Graves, and Ranking Member Quigley:
As you begin work on the Fiscal Year 2018 Financial Services Appropriations bill, we respectfully request that you provide full funding agreed to by the House in the Fiscal Year 2017 House Financial Services Appropriations bill of $250 million for the Department
of the Treasury’s Community Development Financial Institutions (CDFI) Fund.
As you know, the CDFI Fund’s mission is to expand the capacity of CDFIs to provide credit, capital, and financial services to underserved populations and communities across the country. Housed within the Department of the Treasury, the CDFI Fund spurs investments
in local and often underserved communities in rural, urban and Native areas by fostering the creation and expansion of CDFIs, private sector financial institutions that specialize in providing affordable credit, creating jobs, and revitalizing neighborhoods.
CDFIs fill a market gap left by insufficient lending from traditional financial institutions, such as commercial banks.
CDFI Fund Grant Programs Include: Financial Assistance (FA) awards to certified CDFIs and Technical Assistance (TA) grants to certified or emerging CDFIs; the Native American CDFI Assistance (NACA) Program aimed at increasing the number and capacity of CDFIs
serving native communities; and the Bank Enterprise Award (BEA) Program providing monetary awards to FDIC-insured banks that invest in low-income communities and/or in CDFIs.
CDFI Fund grants are awarded competitively to the organizations that best demonstrate how they will partner with their communities to address their economic development needs. Through its administration of these competitive grant programs the CDFI Fund has
not only invested directly in local communities, but has also attracted billions of dollars in additional private-sector investments. Since its inception, the CDFI Fund has awarded more than $2 billion to CDFIs. In FY16 alone the CDFI Fund extended $176 million
in awards which resulted in $3.6 billion investments and loans made by CDFIs in low-income communities. This investment in FY16 helped finance 11,300 small businesses, 33,000 affordable housing units, and provided 427,345 individuals with financial literacy
and other training. In FY15 CDFI awardees created more than 65,000 jobs.
The CDFI Fund is also responsible for administering the New Markets Tax Credit Program, which provides tax credits to attract private investment to distressed communities. In FY16 over $3 billion in loans and investments were made possible under the New
Markets Tax Credit Program, with over 75 percent of the loans and investments made in Severely Distressed Communities. This critical financing generated $8 of private investment for every $1 of federal funding, created 178 million square feet of manufacturing,
office and retail space, and financed over 5,400 businesses.
Access to affordable credit is a pressing issue in many underserved rural, urban and Native communities. It is critical that we continue to make the necessary investments in these struggling communities to get people back to work, to empower local communities
to develop their economies, and to provide financial services to consumers without access to affordable credit. The CDFI Fund is exemplary of that effort and we respectfully request that you ensure that the CDFI Fund is funded at the level approved by the
House in the FY17 Financial Services Appropriations bill. Thank you for your consideration of this request.